Chapter 3

Question 1

What was the extend of french debt by Louis XIV’s death?
How was this increasing?
What could french debt be described as?

Answer 1

2 billion livres
Annual interest payments
Balance of payments crisis

Question 2

What wars was France involved in?
What did this add to?

Answer 2

Wars of the Austrian succession (1740-8)
7 years war (1756-63)
American war of independence

Debt

Question 3

What did France loose in the 7 years war settlement?

Answer 3

Colonies in North America

Question 4

Why can France’s involvement in the American war of independence be considered negative?

Answer 4

Little gain
Treaty of Paris 1783
Expensive: debt = 3.3 billion by 1783
Louis XVI entered during financial crisis

Question 5

Why was France’s financial position weak at the ascension of Louis XVI?

Answer 5

Louis XV spendthrift & failed to produce effective financial reform

Question 6

Why did the gov have to rely on loans?
What was negative about this?
When we’re loans most necessary?

Answer 6

Inefficiency of direct & indirect taxes
Interest to be payed
During war

Question 7

What were direct & indirect taxes?
What were alternates to these?
When were alternates used?

Answer 7

What finances the gov
Loans
To meet the short falls

Question 8

What taxes did Louis XIV & XV introduce for war?

Answer 8

For everyone:
Capitation
Vingtieme

Question 9

What was the capitation tax?

Answer 9

Direct poll tax
For everyone but clergy payed don gratuit instead & 2nd estate payments varied on tax class (22)

Question 10

What was the vingtieme tax?

Answer 10

Direct tax
5% of earnings from land, property, commerce, industry & offices
Clergy win exemption
Pays d’etats won reduced rates

Question 11

What we’re the 1st & 2nd estate privileges?
What is an example of this?

Answer 11

Reduced taxable income

Church annual don gratuit not representative of lands wealth as self calculated

Question 12

What was the main direct tax?

Answer 12

Taille personnelle
An estimated annual value of possessions

Question 13

Who collected indirect taxes?
What were indirect taxes on?
What was wrong with the indirect tax system?

Answer 13

Tax farmers
Goods & services

Accounting corruption
No central treasury
Financial officials purchased positions & kept some of what they collected (at no estimate of what should be there bc of disorganisation)

Question 14

How was France’s economy thriving?

Answer 14

Rapid population growth (late 1780s = 27 mill)
Politically stable, United
Landowners prosperity
Improved agricultural techniques from 1730s (crop rotation, fertilisers)
Trade with colonies X4

Question 15

What we’re the problems of France’s economy?

Answer 15

Economy mainly agricultural: Farming lands % between sons reduced self-sufficiency
Food shortage as population increased
Internal trade barriers
Units and measures not standardised: ample opp for fraud
Industry less mechanised than Britain

Question 16

When was the vintage failure?
Shawn were the harvest failures & bad winters?
What did this cause?

Answer 16

1778
1785-9
Trade slump caused lay offs during time of high bred prices

Question 17

What we’re some of the indirect taxes?

Answer 17

Gabelle (salt)
Tabac (tabacco)
Aides (consumption tax on consumer goods)
Domaine (crown lands)
Triate (customs duty)
Timbre (stamp)

Question 18

When was Turgot the finance minister (controller general)?
Why was he needed?

Answer 18

1774-6
Louis needed to reform royal finances to maintain and effective absolute monarchy
Known for his reforming ideas

Question 19

How did Turgot attempt to get an efficient economy?

Answer 19

Through a freer system
Replacing crown revenue, privileges & customs duties

Question 20

What did Turgot achieve?

Answer 20

Overall, reduced deficit
Cut royal expenses
Gov departments expenses analysed to find ways to reduce expenditure
Removal/reduction of some pensions
Increased efficiency of farming system through tax reforms

Question 21

Which financial minister opposed involvement in the American war?
Why?

Answer 21

Turgot
Costly

Question 22

What we’re the main reform failures of Turgot?

Answer 22

Attempt to replace many indirect taxes with. Property tax opposed by 2nd estate

1774- abandoned attempt to establish free grain trade

Six Edicts, 1776

Question 23

What we’re the 6 Edicts?

Answer 23

Abolish privileges & tax all
Man to work without restriction.

Question 24

What edicts of the 6 edicts were opposed?

Answer 24

5: suppressed guilds
6: abolished corvée

Question 25

When were the 6 edicts registered?
What was needed to achieve this?
Why were the 6 edicts abandoned?

Answer 25

March 1776
Lit de justice
Offended wife range of people (Marie Antoinette)

Question 26

When was Turgot ordered to resign?
Why?

Answer 26

May 1776
6 edicts offended many

Question 27

When was Necker the finance minister?
Why was he called director-general?

Answer 27

1777-8
As a Protestant not Catholic and the post included some Catholicism

Question 28

Why was there a gap between Turgot & Necker’s appointments?

Answer 28

Louis couldn’t find a suitable replacement

Question 29

How did necker continue Turgot’s work?

Answer 29

Reduced royal household expenses
Removed vingtieme on industry

Question 30

How was corruption reduced in gov finance system?

Answer 30

Reform of royal accounting system
Tax-farmers 60–>40

Question 31

Who reformed venality (good)?
How did this cause problems?

Answer 31

Necker
Removal of venal officers who lent money to crown

Question 32

What was necker’s 1781 budget statement?
What was the aim of this?
Who did it put him at odds with?

Answer 32

Summary of royal expenditure & income

100,000 copies sold in weeks
Encourage public debate

King & most courtiers

Question 33

Why was necker’s budget statement inaccurate?

Answer 33

To raise loans instead of needing more taxes
French surplus of 10 mill rather than debt to suggest a stronger financial position

Question 34

Who was Necker popular with?
Why?

Answer 34

Ordinary population
Attacks in vested interest
Successful war with America without raising taxes

Question 35

Who was Necker unpopular with?
Why?

Answer 35

Enemies at court, esp Marie Antoinette
Suggested equality of taxation (effects Parlements )

Question 36

When did Necker resign?

Answer 36

1781

Question 37

When was Calonne controller general?

Answer 37

1783-87

Question 38

How was Calonne more of a traditionalist?
Who’s restructuring reforms had Calonne opposed?

Answer 38

Supported pensions
No attempts seen to tackle ancien regime inconsistencies

Necker’s

Question 39

When did Calonne produce a reform package?
Why?

Answer 39

1786
Paris Parlement less likely to endorse borrowing loans
Loans drying up

Question 40

Calonne largely used ideas if his predecessors, what were these?
What were all these changes?

Answer 40

General land tax & survey & evaluation of land holdings (abolition of remaining vingtiemes)
Indirect tax in legal documents
Removal of internal customs barriers

Major

Question 41

Who backed Calonne’s changes?
Who opposed them?
Why?
What did this cause?

Answer 41

Louis persuaded to
Ministers
Hit hierarchy of ancien regime
A political deadlock

Question 42

What was called to overcome the political deadlock over calonnes measures?

Answer 42

Assembly of Notables

Question 43

How many finance ministers did Louis have between July 1774-1789?

Answer 43

12